PARIS: Euronext wheat was little changed in afternoon trading on Tuesday, consolidating after fresh highs as traders assessed rain forecasts for parched wheat belts worldwide and awaited Algeria’s latest import tender.
December milling wheat, the most active contract on Paris-based Euronext, was up 0.25 euros, or 0.1%, at 212.00 euros ($250.50) a tonne at 1348 GMT.
It earlier touched 214 euros for a life-of-contract record and highest spot price since August 2018.
Chicago wheat held firm to trade near Monday’s six-year high.
Despite large global inventories, dry conditions affecting planting in the United States and Russia and the harvest in Argentina have roiled the wheat market, along with soaring Russian prices and steady international demand.
A second Algeria purchase tender in as many weeks, due to take place on Wednesday, was helping to maintain strength on Euronext.
“We’re in a peculiar market right now,” one futures dealer said. “It could remain volatile at least until the Algeria tender is over.”
European Union suppliers including France were seen as best placed for the tender, with a recent change in Algeria’s import terms expected to prohibit competitive offers of Black Sea origins such as Russian wheat.
Polish prices tracked the international rally of the past week and traders saw scope for further sales to Algeria to add to buoyant recent exports.
“Exports are running the show,” one Polish trader said. “We are competitive compared with Russian wheat and Algeria knows Polish wheat and we will not face questions about quality.”
Export prices for Polish 12.5% protein wheat rose by roughly 50 zloty in the past week to about 910 zloty a tonne (198.3 euros) for delivery in November or the first half of December delivery to port silos.
In Gdynia, one ship is loading 66,000 tonnes of wheat for Saudi Arabia while another loads 60,000 tonnes of wheat for Turkey and a third loads 60,000 tonnes for an unknown destination.
In Gdansk, one ship is loading 22,500 tonnes for Algeria.
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